2022 is projecting strong numbers for many industries across the board, helping to offset some of the downturns businesses experienced in 2020. In large part to the new Bipartisan Infrastructure Bill, construction companies can expect a lot of potential jobs to come their way in the coming year. They will likely need to acquire additional equipment to stay competitive and avoid turning down potential revenue sources.
It’s estimated that almost 80 percent of businesses utilize heavy equipment financing to fund these purchases and grow their business. To make strategic business financing decisions, these are the equipment acquisition trends companies will need to keep in mind this year:
2021 saw an increase in demand for products and services, but with that increase in demand we saw a lot of supply chain disruptions develop. These shortages and disruptions are predicted to continue well into 2022, with delivery bottlenecks persisting. To combat these disruptions, companies will want to invest more of their capital into maintenance for existing equipment and acquiring crucial parts and components for their machines.
These supply chain disruptions added inflationary pressure in 2021 that is also expected to continue into 2022. The Federal Reserve has hinted at planned interest rate hikes this year beginning in March. This rise in interest prices can, in turn, cause equipment prices to rise and make heavy equipment financing the preferred purchasing option with the ability to spread payments out monthly.
New virus variants and pandemic-driven workforce changes will continue to drive demand for new equipment and software innovations. An investment in these new machines will help businesses adapt and help companies to leverage new technologies to better serve their customers. New equipment and software can also help fill the void of any labor shortages a company may be experiencing.
Automation and AI technologies continue to be at the forefront of different industries, but especially construction. AI is expected to help the construction industry power through several of its top obstacles including safety concerns, worker shortages, and overrun schedules. Making sure these new technologies are at the forefront of machines will help make job sites more productive.
Compared to previous years, the U.S. economy will be on more even footing and have sustained growth in 2022. For the first half of the year, the U.S. economy is expected to grow at a 4.4 percent rate, with the second half expected to grow still at an almost three percent pace. The Bipartisan Infrastructure Law put into place is expected to provide a huge influx of capital into our nation’s infrastructure and increase competitiveness to help drive this economic growth. Make sure your company is poised to take advantage of this growth and grow alongside the economy.
If your company is in need of heavy equipment financing and is ready to take advantage of the above trends, contact a member of our team. We stand ready to help.